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Summary

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The Pension Fund Committee of Lancashire Council met on Friday 20 March 2026 to discuss the fund's strategic plan, budget, and governance arrangements. Key decisions included the approval of the Lancashire County Pension Fund Strategic Plan for 2026-29 and its associated budget for 2026/27, alongside the revised Funding Strategy Statement. The committee also approved changes to governance arrangements in line with the 'Fit for the Future' programme, including the recruitment of a new Independent Advisor.

Lancashire County Pension Fund Strategic Plan 2026-29 and Budget 2026/27

The committee approved the draft three-year Strategic Plan for the Lancashire County Pension Fund (LCPF) for 2026-29 and its operating budget for 2026/27. The strategic plan outlines objectives across four workstreams: Governance and Finance, Investments, Administration and Employer Risk, and Shareholder responsibilities. The 2026/27 budget reflects a 10.8% reduction on the previous year, largely due to reduced actuarial work and economies of scale from the expansion of Local Pensions Partnership Investments Limited (LPPI). Concerns were raised about the inflation assumption of 3.2% in light of global events, but the Head of Fund, Mr Joel Michael Tetlow, stated that this would be monitored and reported on in the mid-year budget review.

Review of Funding Strategy Statement

The committee approved the revised Funding Strategy Statement (FSS) for the LCPF. This statement, reviewed as part of the 2025 actuarial valuation, sets out the policies and assumptions for meeting the fund's pension liabilities. Key parameters agreed in January 2026 include a funding buffer of 115% and a recovery period of 20 years. The FSS also incorporates updated policies on admissions, terminations, employer risk, and asset sharing, reflecting guidance from the Scheme Advisory Board.

Lancashire County Pension Fund - Governance Matters

Updates were provided on governance and risk management for the LCPF. The fund was assessed as compliant with The Pension Regulator's General Code of Practice. An updated Breaches Policy was approved, detailing procedures for recording and reporting breaches of law, with no material breaches requiring reporting to The Pensions Regulator in the past year. The risk register was reviewed, with no changes to risk ratings, although preparations for local government reorganisation will be added as a new risk from April 2026.

Fit for the Future - Governance Arrangements

The committee discussed governance changes arising from the 'Fit for the Future' programme, which aims to reform the Local Government Pension Scheme (LGPS). New regulations effective from 1 April 2026 will mandate enhanced knowledge and understanding requirements for all involved with the pension fund, including substitutes on the committee. The Head of Fund, Mr Joel Michael Tetlow, will formally take on the responsibilities of the Senior LGPS Officer role. The committee also approved the recruitment of an Independent Advisor, who will have a broader remit covering investments, governance, and administration, and recommended that Full Council amend the committee's terms of reference to reflect a single Independent Investment Adviser role.

Pension related training, 2025/26 Training Record and Training Plan 2026/27

The committee reviewed the training record for 2025/26, noting attendance at various internal and external events, and the completion of LOLA online modules. A request was made to include attendance at a governance conference in Cardiff in January. The Training Plan for 2026/27 was approved, which includes participation in the Hymans Robertson National Knowledge Assessment to meet new regulatory requirements for individual knowledge and understanding.

Lancashire Local Pension Board Workplan 2026/27

The proposed work plan for the Lancashire Local Pension Board for 2026/27 was noted. The plan was developed in consultation with the Chair of the Board and includes regular activities alongside those proposed in the LCPF's Strategic Plan, focusing on governance, administration performance, and policy reviews.

Responsible Investments Report

An update was provided on LPPI's responsible investment activities for Q4 2025. Key highlights included LPPI's successful re-designation as a signatory to the UK Stewardship Code and a significant UK housing acquisition programme, bringing over 5,000 homes under ownership with plans to expand this further. Discussions touched upon the importance of social and affordable housing, with the understanding that investment location decisions are made by specialist managers focused on risk-adjusted returns and UK-wide diversification.

Pension Administration Performance Update

An update on LPPA's administration services for Q4 2025 showed overall casework performance exceeding the 95% SLA target at 99.1%. However, employer retirement notifications received on time decreased to 44.4% in December 2025, impacting the timeliness of first pension payments. LPPA is implementing a new leaver notification form and planning to automate active retirement payments. Complaints reduced to 52 in the quarter, and customer satisfaction scores for active and deferred members remained broadly consistent. The McCloud Remedy project is progressing, with payments expected to begin in Q1 2026/27. The Pensions Dashboard programme is also advancing, with over 93% of Lancashire members' data being 'Pensions Dashboard ready'.

Date of Next Meeting

The committee was informed that, following a decision by Full Council, the start time for future committee meetings would be moved from 10:30 am to 10:00 am, effective from May 2026. The next meeting is scheduled for Friday 19 June 2026.

Exclusion of Press and Public

The committee resolved to exclude the press and public from the meeting for the remaining agenda items, which involved the disclosure of exempt information.

Local Pensions Partnership Limited - Shareholder Update

The committee noted the shareholder update for Local Pensions Partnership Limited (LPPL).

Local Pensions Partnership Limited Budget 2026/27 and LPPI/LPPA Business Plans

The committee approved the LPPL Group Budget for 2026/27 and the business plans for LPPA and LPPI.

Investment Performance Update Report

The committee noted the report on investment performance for Q4 2025, which indicated generally good performance against benchmarks.

Investment Panel Update

The minutes of the Investment Panel meeting held on 11 December 2025 were noted.

Independent Investment Advisers - Strategic Objectives Assessment

The committee noted the outcomes of an assessment of the Independent Investment Advisers' compliance against their strategic objectives.

Independent Investment Adviser - Contract Extension

The committee approved the 12-month contract extension for Mr D Crum, an Independent Investment Adviser, citing the importance of continuity in accessing high-quality advice.

Delegated decisions linked to this meeting

Decision summaries below are AI-generated from the council’s published record. Check the council source or the full decision page before relying on them.

  • Minutes of the last meeting.
    Recommendations Approved

    The Pension Fund Committee of Lancashire Council approved recommendations regarding the demerger of Local Pensions Partnership Investments Limited (LPPI) from Local Pensions Partnership Limited (LPPL) on 20 February 2026. The committee delegated authority to the Director of Finance and Commerce to implement a dividend in specie to facilitate the demerger.

    Council website ↗

  • Lancashire Pension Fund Committee approved recommendations on 20/03/2026. The committee considered and commented on the Local Pensions Partnership Limited Shareholder Update.

    Council website ↗

  • The Pension Fund Committee approved the recommendations regarding pension administration performance. The committee noted that Service Level Agreements have been met. The report covered the period from 1 October 2025 to 31 December 2025.

    Council website ↗

  • The Pension Fund Committee approved the Training Plan for 2026/27. The committee reviewed the 2025/26 training record and provided feedback. The plan includes online self-learning modules, bespoke workshops, and external training.

    Council website ↗

  • Review of Funding Strategy Statement
    Recommendations Approved

    The Pension Fund Committee of Lancashire Council approved the revised Funding Strategy Statement on 20 March 2026. The committee agreed to a funding buffer of 115%, a recovery period of 20 years, and specific discount rates for past and future service.

    Council website ↗

  • Lancashire Pension Fund Committee approved the contract extension for David Crum on 20/03/2026.

    Council website ↗

  • The Pension Fund Committee approved recommendations regarding governance matters for the Lancashire County Pension Fund on 20 March 2026. The committee approved the Fund's updated Breaches Policy.

    Council website ↗

  • The Pension Fund Committee approved the Lancashire County Pension Fund Strategic Plan 2026-29 and the Budget for 2026/27 on 20 March 2026. The committee approved the three-year strategic plan and the one-year budget for the fund. The budget includes £6.9m for pensions administration expenses, £1.9m for oversight and governance expenses, and £119.8m for investment management expenses.

    Council website ↗

  • The Lancashire Pension Fund Committee approved recommendations on 20/03/2026. The committee approved rescinding a previous decision to establish an Appointments Sub Committee and approved the recruitment of an Independent Advisor with a wider remit. The committee will amend its Terms of Reference to reduce the number of Independent Investment Advisors from two to one.

    Council website ↗

  • The Pension Fund Committee approved the Lancashire Local Pension Board Workplan 2026/27 on 20 March 2026. The committee noted the proposed work plan for the upcoming financial year. The work plan includes regular standing items, governance reviews, administration performance reports, and policy reviews.

    Council website ↗

  • Investment Panel Update
    Recommendations Approved

    The Pension Fund Committee approved recommendations on 20/03/2026. This decision concerned an update on items considered by the Investment Panel.

    Council website ↗

  • Lancashire Pension Fund Committee approved the Local Pensions Partnership Limited Budget for 2026/27 and LPPL/LPPA Business Plans on 20 March 2026.

    Council website ↗

  • The Pension Fund Committee of Lancashire Council approved recommendations on 20/03/2026. This decision related to the assessment of Independent Investment Advisers' compliance with their strategic objectives.

    Council website ↗

  • Investment Performance Update Report
    Recommendations Approved

    Lancashire Pension Fund Committee approved recommendations on 20/03/2026. The decision concerned an update on investment performance, key investment themes, and the macro-economic outlook for the Lancashire County Pension Fund.

    Council website ↗

  • Responsible Investments Report
    Recommendations Approved

    The Pension Fund Committee of Lancashire Council approved recommendations regarding responsible investments on 20 March 2026. The committee considered a report outlining the work undertaken by the Fund's pooling partner, Local Pensions Partnership Investments Limited (LPPI), on responsible investment aspects. This included approving LPPI's 2024-25 Stewardship Code submission and noting the acquisition of 5,478 homes by LPPI and Northern LGPS.

    Council website ↗

Attendees

Profile image for Councillor County Councillor Joanne Ash
Councillor County Councillor Joanne Ash Local Councillor Decision - Rossendale South Reform UK Rossendale South
Profile image for Councillor County Councillor Andy Blake
Councillor County Councillor Andy Blake Local Councillor Decision - Moss Side & Farington Reform UK Moss Side & Farington
Profile image for Councillor County Councillor Matthew Brown
Councillor County Councillor Matthew Brown Local Councillor Decision - Preston Central West Labour and Co-operative Party Preston Central West
Profile image for Councillor County Councillor Rick Edwards
Councillor County Councillor Rick Edwards Local Councillor Decision - Burscough & Rufford Reform UK Burscough & Rufford
Profile image for Councillor County Councillor Gordon Johnson
Councillor County Councillor Gordon Johnson Local Councillor Decision - Ormskirk Our West Lancashire Ormskirk
Profile image for Councillor County Councillor Ashley Joynes
Councillor County Councillor Ashley Joynes Local Councillor Decision - Accrington South Reform UK Accrington South
Profile image for Councillor County Councillor Prof. Michael Lavalette
Councillor County Councillor Prof. Michael Lavalette Local Councillor Decision - Preston Central East Independent Preston Central East
Profile image for Councillor County Councillor Tom Pickup
Councillor County Councillor Tom Pickup Cabinet Member for Adult Social Care Reform UK Padiham and Burnley West
Profile image for Councillor County Councillor Steve Rigby
Councillor County Councillor Steve Rigby Conservative St Annes South
Profile image for Councillor County Councillor David Shaw
Councillor County Councillor David Shaw Reform UK Fleetwood East

Topics

Breaches Policy LGPS 'Fit for the Future' initiative Lancashire County Pension Fund Strategic Plan for 2026-29 Senior LGPS Officer Funding Strategy Statement Training Plan 2026/27 Lancashire Local Pension Board Workplan 2026/27 Local Pensions Partnership Investments Limited (LPPI) Local Pensions Partnership Administration (LPPA) Affordable Housing Stewardship Code McCloud Remedy Pensions Dashboard Programme Head of Fund Independent Person Independent Investment Adviser Local Pensions Partnership Limited (LPPL) Joel Michael Tetlow D Crum UK housing acquisition programme

Meeting Documents

Reports Pack

Public reports pack 20th-Mar-2026 10.30 Pension Fund Committee.pdf

Minutes

Minutes of Previous Meeting.pdf

Additional Documents

Appendix A.pdf
Governance Matters.pdf
Appendix C.pdf
Review of Funding Strategy Statement.pdf
Appendix B.pdf
Lancashire Local Pension Board Workplan 2026-27.pdf
Appendix A.pdf
Appendix A.pdf
Appendix B.pdf
Appendix A.pdf
Responsible Investments Report.pdf
Pension Fund Strategic Plan 2026-29 and Budget 2026-27.pdf
Appendix A Final draft FSS.pdf
Appendix B Summary of changes.pdf
Appendix A.pdf
Fit for the Future - Governance Arrangements.pdf
Appendix B.pdf
Pension related training 202526 Training Record and Training Plan 202627.pdf
Appendix A.pdf
Pension Administration Performance Update.pdf
Appendix C Rationale for decision other than recommendation.pdf
2026.02.20 MINUTES.pdf